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prefer arbitration to litigation - Coggle Diagram
prefer arbitration to litigation
MD
Nowadays, there has been a diversity of commercial activities worldwide in order to
satisfy the incredible increase in human demands.
However, commercial disputes have also
become more complicated, especially international-related cases.
Arbitration and litigation are two popular legal techniques for settling disputes among parties today.
In general, arbitration has
still been considered as the most favoured dispute resolution mechanism for international matters.
This essay below explains why businessmen prefers arbitration to litigation when dealing with
their disputes.
Arbitration is considered to be more flexible than Litigation.
Laws related to the process of litigation are more complex as compared to arbitration, litigation must follow law of civil court, it involves following CPR rule book whereas Arbitration rules are much more simple and small in number.
In arbitration there is no code of procedure, it is agreed by the parties, they can agree and settle to whatever they want.
Arbitration can provide better quality justice than many courts of the country as they already overloaded with cases.
Arbitration in international disputes also provide better quality decision as compared to domestic courts.
Arbitration as compared to litigation is less time consuming as well as less expensive
Basically, with a quicker and less complicated process, resolving cases by arbitration
costs a smaller amount of money for both sides.
one of the most outstanding strengths of arbitration is the ability to keep disputes
away from the public eye.
Unlike litigation in the court, arbitration takes place in private.
Confidentiality is required of the arbitration.
It provides terrific values to companies which prefer
to keep their business secrets confidential as well as protecting their reputation and prestige. A
public court hearing cannot guarantee such privacy.
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In conclusion, Arbitration can be used to replace the traditional way of litigation in court.
Thanks to four main advantages mentioned above, arbitration deserves to become a mainstay in
resolving legal disputes.